What is the purpose of compulsory traffic insurance for vehicles?
2 Answers
The primary purpose of compulsory traffic insurance is to protect pedestrians. Regardless of whether the insured is at fault in an accident, the insurance company will provide compensation according to the insurance policy. This is essentially a mandatory form of protection aimed at safeguarding the personal safety and property of pedestrians and non-motorized vehicle users. In the event of a collision between a motor vehicle and a non-motorized vehicle, the compulsory traffic insurance will provide compensation within the liability limits to ensure the victim receives due payment. Below are the relevant details: 1. Overview: The full name of compulsory traffic insurance is "Compulsory Traffic Accident Liability Insurance for Motor Vehicles," which is the first mandatory insurance system implemented by national law in China. 2. Compensation under compulsory traffic insurance: The compensation is divided into liability-based compensation and no-liability compensation. Liability-based compensation includes limits for death and disability compensation, property loss compensation, and medical expenses. No-liability compensation refers to limits for death compensation without liability, property loss compensation without liability, and medical expense compensation without liability.
As an average car owner, I find the compulsory traffic insurance incredibly practical. It's mandatory primarily to cover the economic losses I might cause to others if I accidentally hit someone or damage property while driving, such as medical expenses or repair costs. Without it, traffic police can stop my car, impose fines, and even prevent me from driving—I was once fined 200 yuan for late payment. More critically, in the event of an accident, lacking insurance means I'd have to pay out of pocket, potentially leading to financial ruin. It protects third parties, not directly benefiting me, but it prevents minor oversights from turning into major disasters. For instance, in my neighbor's accident, the insurance quickly covered the damages, avoiding legal disputes. The monthly premium is affordable, around a hundred yuan, buying peace of mind and ensuring compliance with the law, which saves a lot of hassle. I always renew it on time to ensure safe and hassle-free driving.
